For the 24 hours to 23:00 GMT, the GBP declined 0.22% against the USD and closed at 1.2358, after the British Government announced that Prime Minister, Theresa May, will launch UK’s separation proceedings with the European Union on 29 March 2017.
In the Asian session, at GMT0400, the pair is trading at 1.2365, with the GBP trading 0.06% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.2320, and a fall through could take it to the next support level of 1.2276. The pair is expected to find its first resistance at 1.2422, and a rise through could take it to the next resistance level of 1.2480.
Going ahead, investors will look forward to UK’s crucial inflation figures for February, slated to release in a few hours and is expected to breach the Bank of England’s 2.0% target. Moreover, UK’s public sector net borrowing data for February will be closely monitored by investors.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.